Saturday October 18,2014 : TEN CENT SUBSIDIARY BUYS INTO CHINA LOTSYNERGY
$57.4 million deal to acquire 7 percent, with more to come?
Hongze Lake, a subsidiary of the massive Hong Kong corporate Ten Cent, has announced that it is acquiring a 7 percent stake in lottery technology and services company China LotSynergy for $57.4 million.
Hongze will buy 594,034,513 new shares at a price of $0.75 each, and has negotiated the option to acquire a further 3.46 percent at $0.83.
If the option is exercised, the total proceeds from the sale will rise to $672.2 million, the company reported in a Hong Kong Stock Exchange filing this week.
Management at China LotSynergy said the new investment will be used mainly as working capital, and lays a sound foundation for the company's association with Ten Cent.